Tag
#liquidity
3 articles
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Liquidity Constraints in Backtesting: Why a Paper Strategy Cannot Always Be Filled
Liquidity constraints decide whether a backtested trade could actually have happened. A guide to volume caps, capacity, thin stocks and the filters that keep a test honest.
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What Is the Size Factor? The Small Cap Premium and Its Caveats
The size factor tilts a portfolio towards smaller companies. The historical small cap premium is real in the data but heavily qualified by liquidity, survivorship and cost.
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Working Capital and the Cash Conversion Cycle, Explained
Working capital is the money tied up in day to day operations, and the cash conversion cycle measures how many days cash stays locked in the business.
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